Hilton Foods shares fall 14% after 1H results

Hilton Foods shares fall 14% after 1H results

Hilton Foods Group PLC (HFG.L) experienced a significant decline in its share price, dropping by 14% following the release of its first-half (1H) financial results for the year ended 29 June 2025. The company reported robust performance in its retail meat and convenience businesses, with a 7.6% increase in interim revenue to £2.09 billion. Despite this, the company's stock price took a hit, largely due to concerns over inflationary trends in white fish and operational disruptions in its Foppen smoked salmon business [1].

The company's pre-tax profits ticked up by 0.3% to £33.6 million, but statutory profit before tax decreased by 4.7% year-on-year. Hilton Foods also reported an adjusted free cash outflow of £30.8 million, compared to a £30 million inflow in the previous year, and a net bank debt increase from £131.4 million to £202.4 million [1].

Chief Executive Steve Murrells acknowledged the challenges faced, stating that the company had responded with agility and maintained a strong platform for future growth. However, the market's reaction to these results was negative, with shares falling sharply [1].

Investors are also keeping an eye on Hilton Foods' valuation metrics. The company's Forward P/E ratio stands at 1,246.07, which is significantly higher than its historical average. Despite this, the company's revenue growth of 9.50% and a notable Return on Equity (ROE) of 13.04% indicate strong financial health [2].

Technical indicators suggest caution, with the Relative Strength Index (RSI) at 17.73, indicating that the stock is currently in oversold territory. The Moving Average Convergence Divergence (MACD) and Signal Line both indicate a bearish trend [2].

Hilton Foods' strategic focus on diversified food products, including plant-based options, aligns with global trends towards healthier and sustainable eating. This could position the company well for long-term growth. However, the immediate market reaction to its 1H results has been negative, with shares falling by 14% [2].

References:
[1] https://www.lse.co.uk/news/hilton-food-delivers-robust-h1-performance-00nogl9u69dc073.html
[2] https://www.directorstalkinterviews.com/hilton-food-group-plc-hfg-l-a-stable-dividend-stock-with-growth-potential-in-the-packaged-foods-sector/4121214498